Geothermal Tax Credits for Richmond Residents

Looking to save big money on the installation of that geothermal heating and cooling system you’ve always dreamed of? Well, this could be the time!

The Bipartisan Budget Act of 2018, signed in February 2018, reinstates the Residential Energy Efficient Property Credit for fuel cells, small wind systems … and geothermal heat pumps. As far as the latter are concerned:

  • This credit applies from now through December 31, 2021.
  • It covers 30% of designated expenditures for systems placed in service between now and December 31, 2019.
  • A measured reduction in credit value is slated for each year following, so if you want the total 30% credit, you’ll have to move swiftly.
  • Retrofit systems are accepted as “placed in service” when they’re totally installed and ready for use.
  • Systems for newly constru|ere]36]cted or newly renovated homes are judged “placed in service” at the time you, the homeowner, first inhabit the home.
  • The home does not have to be your main residence.
  • Your geothermal heat pump has to satisfy federal ENERGY STAR criteria.
  • To get the Residential Energy Efficient Property Credit, you’ll have to finish and file IRS Form 5695.

For further information, see our blog as well as this WaterFurnace®-generated flier, Understanding the Federal Incentives for Geothermal Heat Pumps.

While it’s certainly true that we at DeltaTemp would be delighted to see you get a geothermal heating and cooling system for your Richmond home, we cannot legally endorse any financial tactics for doing so. We can, however, recommend that you get together with a local tax professional. He or she can advise you on how best to profit from geothermal tax credits considering your singular financial situation.

If you want to find out more about what other energy-related tax incentives might apply to you at the federal, state, and local levels, look at dsireusa.org. This is an unusual resource that has state-by-state data on literally thousands of policies and incentives promoting  renewable energy and energy efficiency.

And don’t forget: When you’re ready to install a geothermal heating and cooling system in your home, go with the Richmond geothermal gurus at DeltaTemp. We’ll do the job right – to help you start saving both energy and money right from the start.